“New Zealand Finance Minister Bill English said that China Investment Corp., a sovereign wealth fund, has expressed interest in buying his country’s government bonds at auction.
Singapore, Hong Kong and Malaysia also are interested in buying New Zealand debt as Asian governments seek to reduce their reliance on U.S. dollar assets when investing their reserves, English was cited as saying by the Marlborough Express, a newspaper based on New Zealand’s South Island. English’s comments were accurately reported by the newspaper, Craig Howie, a spokesman for the minister, said by phone from Wellington.
New Zealand’s dollar climbed to the highest level since March 2008 on speculation China will buy the nation’s assets to diversify the world’s largest holdings of foreign reserves. Asian nations are seeking to reduce their reliance on U.S. dollar assets as the greenback’s decline threatens to erode returns. CIC, a $300 billion fund, may have set aside 1.5 percent, or about NZ$6 billion ($4.9 billion), of its reserves to invest in New Zealand, interest.co.nz reported yesterday, citing an unidentified person.”
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